Question

Close Windo Moving to another question will save this response. < Question 3 of 20 on 3 0.1 points Save An Thich of the following statements is FALSE? Graphically, the efficient portfolios are those on the northeast edge of the set of possible portfolios, an area which we call the efficient frontier. To arrive at the best possible set of risk and return opportunities, we should keep adding stocks until all investment opportunities are represented We say a portfolio is short those stocks that have negative portfolio weights Adding new investment opportunities allows for greater diversification and improves the efficient frontier Question 3 of 20 Moving to another question will save this response here to search ote -

Answer 1

False statement is :

A. Graphically, the efficient portfolios are those on the northeast edge of the set of possible portfolios, an area which we call the efficient frontier

Since An efficient portfolio is either a portfolio that offers the highest expected return for a given level of risk, or one with the lowest level of risk for a given expected return. The line that connects all these efficient portfolios is the efficient frontier. Efficient portfolio is not an edge.

Please do rate me and mention doubts in the comments section.